Tidal Finance is providing a total of 15,000,000 $TIDAL tokens every month to reward staking pool. This incentive will be set at launch to reward the staking pool, reward will be distributed per block. The reward amount is designed to bootstrap 400 million of $TIDAL ( ~20% of the total circulating supply) in the staking pool providing 50% APR.
TIDAL token needs to be held in metamask on polygon network to participate in the staking pool. How to transfer token from ethereum to polgyon please refer to "Transfer Token to Polygon" section.
Risk of Staking
Please be noted that your staking is subject to the financial risk of losing shall a claim be approved.
Potential loss incurred during a payout: After the governing risk team clears and validates a hack has happened, the payout process begins. Staking pool comes into play at this stage to provide collateral to the reserve provider(s) in question. For mainnet launch, staking collateral provided is $TIDAL tokens valued at lessor of $100k USD or 10% of the total Tidal claimable amount (tidal token valuation date of the day before the hack).
Payout function of the staking pool is created to support tidal platforms growth by mitigating initial reserve providers’ loss. It is important for tidal’s platform to bootstrap USDC reserves especially at the beginning.
For other risks please refer to the risk section on gitbook.
Users can unstake their $TIDAL tokens at any time. Please note that the unstaking process is subject to a 14-day lock-up period. During the 14-day lock-up period, stakers are still entitled to receive their staking reward for their staked Tidal tokens until the unstaking becomes effective, as well as taking the risk of getting slashed under a valid claim.
Staking parameter setting The staking process is based on the following formula:
Staking APR = RPB X BPY / TTS
- RPB = (Tidal tokens) Reward Per Block
- BPY = Block Per Year
- TTS = Total Tidal Staked
Please be noted that the APR formula given above represents the current APR. And it does not involve any interest-compounding mechanism. The reward amount (APR) can be adjusted by calling a function and tuning the RewardPerBlock parameter in the smart contract. Depending on the staking amount and USDC reserve amount, reward amount shall be adjusted to best support the ecosystem growth.